Ian Cowie was named Consumer Affairs Journalist of the Year in the
London Press Club Awards 2012. He has been head of personal finance at
Telegraph Media Group since 2008, having been personal finance editor
since 1989. He joined the paper in 1986. He is @iancowie on Twitter.

Two months left to beat EU rule change raising insurance costs by 25pc

But experts predict that women’s life cover and critical illness costs will be increased by between 20pc and 25pc, adding thousands of pounds to the cost of long-term policies. This will be just one of the effects of a European Court of Justice ruling that will prevent insurers from discriminating between men and women on the basis of claims experience.

Older women may gain more attractive annuity rates because insurers will no longer be allowed to offer them lower yields on the basis that they are likely to live longer and receive more annual payments.

However, while those potential winners remain uncertain, the losers are plain to see. For example, insurance experts at St. James’s Place Wealth Management point out that a £200 per month contribution over a 10-year term life assurance policy with a 25pc ‘European equality’ rate increase could cost a female policyholder an extra £6,000. That’s an unexpected and unintended consequence of the court intervening in markets and a severe punishment for prudence.

Fortunately, this legal change will not take effect until midnight on December 20 and contracts which are in force before then will not be affected. So there is still time to beat the rate hikes that will take effect before the end of this year.

Beware, though, of being lulled into a false sense of security by dates that remain just over two months away. There may be less time to take action than you think. For example, like any financial commitment, you should carefully consider your options before you make your decision. Remember the old adage about acting in haste and repenting at leisure.

Given the complexity of some insurance policies – and the wide choice available– many people will want to consult their financial adviser before choosing the best option for them and their families. A further complication – which may add to the delay between making your decision and signing a contract before midnight on December 20 –is that many insurance companies will require a General Practitioner’s report before providing cover on some policies.

This is most likely to affect high-value life cover, medical insurance, critical illness and PHI policies where the size of potential payouts makes it vital for the insurer to assess risk accurately. Needless to say, these are the policies where prices will rise most sharply in cash terms after the court’s ruling takes effect.

So it is important to consider taking action to beat the rate hike without unnecessary delay. For example, if a General Practitioner’s report or other medical examination is likely to be required, it may already prove a struggle to beat the December 20 deadline. While, as mentioned earlier, it would be unwise to act in haste, it makes sense to consider financial protection for you and your family without unnecessary delay. The alternative will in many cases be substantially higher costs in future.